All eyes are on DLP Resources Inc (TSX-V:DLP, OTCQB:DLPRF), the TSX Venture Exchange-listed junior with its growing mineral assets and upcoming resource estimates.
So says Fundamental Research, which initiated coverage of stock in the ambitious exploration group with a 'Buy' recommendation and 'fair value' estimate of $0.56 - more than double the current share price.
DLP has assembled seven properties: two in Peru focused on copper and molybdenum, and five in British Columbia, Canada, with resources such as cobalt and base metals.
The company’s flagship project, Aurora, a copper-molybdenum site in Peru’s Calca region, has generated promising drilling results.
So far, DLP has identified a mineralised zone covering approximately 1.1 kilometres by 0.95 kilometres and extending one kilometre deep, featuring a copper-silver zone near the surface and a copper-molybdenum zone beneath.
Fundamental suggests the Aurora project could hold over five billion pounds of copper equivalent (CuEq), adding that Aurora’s molybdenum grades appear to be higher than those typically found in similar deposits.
DLP aims to release an initial resource estimate for the project in the first quarter of 2025, a development anticipated to be a key catalyst for the stock.
The company’s second major asset, the Esperanza copper-molybdenum project, is in the southwest of Peru’s copper belt, home to several world-class deposits such as Freeport-McMoran's Cerro Verde mine and Southern Copper’s Toquepala mine.
Next year, DLP plans to conduct a ground survey at Esperanza to help define future drill targets, potentially adding another significant copper resource to its portfolio.
DLP’s cash position is solid, with $4 million reported as of July 2024. This, combined with the fact that management and founders hold 28% of the company’s equity, indicates a strong alignment with shareholder interests, according to Fundamental.
Its analysts also pointed out that with copper prices near record highs, junior miners such as DLP could attract acquisition interest from larger companies seeking to expand their resource and reserves base amid increasing global demand for electric vehicle and green energy infrastructure.